GENSCRIPT BIO(HK:01548) Xinda Securities·2026-03-17 10:25Investment Rating - The report assigns a "Buy" rating for King’s Ray Biotechnology (1548.HK) based on its strong performance and growth potential in the biopharmaceutical market [1]. Core Insights - King’s Ray Biotechnology reported robust growth in 2025, with total revenue reaching $960 million, a year-on-year increase of 61.4%. The adjusted net profit was $230 million, reflecting a significant growth of 285% [2][6]. - The company operates three main business segments: Life Sciences, Prosperity Bio, and BestJet, all showing positive operational trends [2]. Business Segment Summaries Life Sciences - In 2025, the Life Sciences segment generated $522 million in revenue, a 14.8% increase year-on-year, with an adjusted gross profit of $267 million, up 12.5% [3]. - The European market showed significant growth, with revenue share increasing from 16% in 2024 to 19% in 2025 [3]. - The segment aims for a revenue growth of 15-18% in 2026, targeting an adjusted gross margin of approximately 52% [5]. Prosperity Bio - Prosperity Bio achieved $389 million in revenue in 2025, a remarkable 309.1% increase. Excluding milestone revenues, the organic growth was 21% [4]. - The segment added 41 new CDMO projects, a 46% increase, and aims for a revenue growth of 20-25% in 2026 [5]. - The segment is expected to maintain high growth rates as more projects enter late-stage clinical trials [4]. BestJet - BestJet reported $58 million in revenue for 2025, a 7.9% increase, with an adjusted gross profit of $23 million [5]. - The segment is focusing on innovative product development, with AI enhancing research efficiency by 140% [5]. - The revenue from innovative products increased from 40% in 2024 to 44% in 2025, indicating strong potential for future growth [5]. Financial Projections - The company forecasts revenues of $807 million, $948 million, and $1.116 billion for 2026, 2027, and 2028, respectively, with corresponding net profits of $91 million, $183 million, and $239 million [7]. - The projected P/E ratios for these years are 34.35, 17.13, and 13.14, indicating a favorable valuation outlook [7].